On the Non-Symmetric Nash and Kalai-Smorodinsky Bargaining Solutions

Yigal Gerchak

Abstract

Recently in some negotiation application areas the usual assumption that the negotiators are symmetric has been relaxed. In particular, weights have been introduced to the Nash Bargaining Solution to reflect the different powers of the players. Yet operating with non-symmetric bargaining solutions and their implications is, we feel, not well understood.

We analyze the properties and optimization of the non-symmetric Nash Bargaining Solution and of a non-symmetric Kalai-Smorodinsky Bargaining Solution. We provide extensive comparative statics, then comment on the implications of the concepts in supply chain coordination contexts.